Armando Hernandez Fashions, Inc. sponsors a defined-benefit pension plan for its employees. The company's pension trust provided the following information: fair value of beginning plan assets. $569,000: projected benefit obligation at the beginning of the year, $678,000; service cost, $54,000; interest on beginning PBO. $56,900; actual loss on plan assets, $35,800 composed of expected gains of $50,000 and unexpected losses of $85,800; actuarial gains because of assumptions about PBO, $98,543; benefit payments made to retirees, $29.780; and contributions made by the sponsor corporation, $86.500. There is no amortization necessary under the corridor approach. The ending balance of the PBO was previously calculated as $660.577. Determine the ending balance of the plan assets and indicate the funded status of the plan at the end of the year. (Abbreviations used: PBO = Projected Benefit Obligation. If an input field is not used in the statement, leave the field empty, do not select a label or enter a zero. Use a minus sign or parentheses if the fund status is underfunded.)
Armando Hernandez Fashions, Inc. sponsors a defined-benefit pension plan for its employees. The company's pension trust provided the following information: fair value of beginning plan assets. $569,000: projected benefit obligation at the beginning of the year, $678,000; service cost, $54,000; interest on beginning PBO. $56,900; actual loss on plan assets, $35,800 composed of expected gains of $50,000 and unexpected losses of $85,800; actuarial gains because of assumptions about PBO, $98,543; benefit payments made to retirees, $29.780; and contributions made by the sponsor corporation, $86.500. There is no amortization necessary under the corridor approach. The ending balance of the PBO was previously calculated as $660.577. Determine the ending balance of the plan assets and indicate the funded status of the plan at the end of the year. (Abbreviations used: PBO = Projected Benefit Obligation. If an input field is not used in the statement, leave the field empty, do not select a label or enter a zero. Use a minus sign or parentheses if the fund status is underfunded.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Armando Hernandez Fashions, Inc. sponsors a defined-benefit pension plan for its employees. The company's pension trust provided the following information: fair value of beginning plan assets.
$569,000: projected benefit obligation at the beginning of the year, $678,000, service cost, $54,000; interest on beginning PBO. $56,900; actual loss on plan assets, $35,800, composed of
expected gains of $50,000 and unexpected losses of $85,800; actuarial gains because of assumptions about PBO, $98,543; benefit payments made to retirees, $29.780; and contributions made
by the sponsor corporation, $86.500. There is no amortization necessary under the corridor approach. The ending balance of the PBO was previously calculated as $660,577. Determine the
ending balance of the plan assets and indicate the funded status of the plan at the end of the year. (Abbreviations used: PBO = Projected Benefit Obligation. If an input field is not used in the
statement, leave the field empty; do not select a label or enter a zero. Use a minus sign or parentheses if the fund status is underfunded.)
Plan Assets
Pian Assets Ending Balance
Amount
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